AUTO1 Group (LON:0A9L) reported record first-quarter results, with management pointing to strong growth across both its merchant and retail businesses and improved operating leverage from recent capacity investments.
Co-founder and Chief Executive Officer Christian Bertermann said the company sold 249,000 total units across its retail and merchant segments in the first quarter of 2026, up 22% from a year earlier and a new company record. Total gross profit also reached a record EUR 289 million, rising 22% year-over-year. Adjusted EBITDA was EUR 60 million, which Bertermann said was EUR 2 million above the prior-year period and EUR 15 million higher than the previous quarter.
Merchant unit sales cross 200,000 for the first time
AUTO1’s merchant segment sold 216,000 units to partner dealers during the quarter, up 19% year-over-year and above 200,000 quarterly units for the first time. Merchant gross profit rose 15% to EUR 207 million. Merchant gross profit per unit was EUR 957, down about 3% from the prior-year quarter, which management said reflected severe weather in January.
The company’s active buying partner network expanded to 36,200 across Europe, an increase of 6,800 partners, or 23%, from the first quarter of 2025. Bertermann said merchant demand was supported by the company’s vehicle selection and financing options, though he noted the average quarterly basket declined slightly as AUTO1 prioritized dealer market share over basket development.
Merchant financing continued to grow. AUTO1 financed EUR 330 million of merchant sales in the quarter, up 22% year-over-year, while financed units rose 19% to 35,800. The portfolio balance increased 25% from a year earlier to EUR 322 million. Bertermann said Italy is expected to be the next market for the rollout of merchant financing products, with launch anticipated in the second quarter.
Autohero retail growth accelerates
In retail, AUTO1’s Autohero business delivered 32,500 units in the first quarter, up 48% year-over-year and a new quarterly record. Retail gross profit increased 47% to EUR 82 million, while retail gross profit per unit was EUR 2,555.
Bertermann said the company was pleased to maintain stable retail GPU year-over-year while accelerating growth. He said AUTO1 remains focused on scaling Autohero quickly but remains committed to increasing retail GPU over the long term.
Aided brand awareness for Autohero reached 35% across all markets at the end of the quarter, up 9 percentage points from a year earlier and 2 points above the end of 2025. Bertermann said the company is launching brand ambassador campaigns in Germany, France, Italy and Spain. AUTO1 is also introducing Buy Autohero co-branding at locations that serve as both purchasing drop-off and retail pickup sites. At the end of the first quarter, the company had 82 co-branded locations and 77 Autohero pickup locations across Europe.
CFO highlights cash position and guidance
Chief Financial Officer Christian Wallentin, participating in his first full earnings call in the role, said AUTO1 ended the quarter with EUR 652 million in total cash, up EUR 48 million from year-end, and no corporate debt. Inventory was stable during the quarter despite higher sales, which Wallentin said reflected faster trading speeds.
Captive finance assets increased by nearly EUR 90 million, while the company used committed securitization lines to refinance EUR 71 million of those additions. Wallentin said the resulting captive finance cash outflow was about EUR 19 million. He added that normal working capital patterns are expected to reverse some of the first quarter’s EUR 48 million cash inflow in the second quarter.
AUTO1 confirmed its full-year outlook. The company expects:
- Total unit sales of 940,000 to 1 million vehicles;
- Merchant units of 815,000 to 865,000;
- Autohero units of 125,000 to 135,000;
- Adjusted EBITDA of EUR 250 million to EUR 275 million; and
- Gross profit of EUR 1.1 billion to EUR 1.2 billion.
Wallentin said that based on first-quarter performance and run rates, particularly for units, AUTO1 is targeting the top end of its guidance range. He added that early data suggests Autohero volumes could exceed the current guidance range, though the company is balancing unit growth and profitability.
Management addresses unit trends, inventory and credit risk
During the question-and-answer session, Bertermann said AUTO1 expects a “slight to substantial” sequential increase in absolute Autohero units within the current guidance framework, while also noting that it is too early to say whether retail units will exceed the upper end of guidance. For the second quarter specifically, he later clarified that management expects a slight increase in retail units and a slight reduction in merchant units.
On merchant GPU, Bertermann said 80% to 90% of the year-over-year decline was due to weather. He and Wallentin said January was the weakest month in the quarter, with March the strongest, and management expects merchant GPU to increase sequentially in upcoming quarters, with a slight improvement in the second quarter and a stronger increase in the second half.
Asked about Autohero inventory levels, Bertermann said the company is rolling out a second version of its Autohero trading system. He said the system is designed to increase inventory turns and efficiency through a renewed stocking algorithm, and that the change was not related to macroeconomic concerns.
Wallentin also addressed merchant finance impairments disclosed in the company’s annual report, saying AUTO1 recognized EUR 11.8 million in credit impairments in 2025, net of recoveries. He said the issue stemmed from underwriting in one market, where local processes and dealer behavior led to a high level of “sold out of trust” cars. Wallentin said AUTO1 incorporated learnings into new underwriting and credit monitoring and has seen the issue come down significantly since then.
Market backdrop and capital markets event
Bertermann said the used car market in the countries where AUTO1 operates was roughly stable in the first quarter, estimating it at down 1.3%. He said January and February were weaker for the European market, followed by a strong catch-up in March. Management said current macroeconomic and geopolitical impacts are limited and contained within guidance, while acknowledging uncertainty.
AUTO1 also announced it will host its first capital markets event on June 17 at 3:00 p.m. Central European Time. Bertermann said the company plans to present historic segment financials and long-term targets for both the merchant and retail businesses.
About AUTO1 Group (LON:0A9L)
AUTO1 Group SE operates a digital automotive platform for buying and selling used cars online in Europe. It operates AUTO1.com for the sale of used cars to professional car dealers; Autohero.com for sale of used cars to private customers; and wirkaufendeinauto.de, an online platform to sell their used cars to consumers. AUTO1 Group SE was founded in 2012 and is based in Berlin, Germany.
